Acuity

Acuity 32: The decline and fall of buy-to-let?

July 04, 2016

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The British have always seen property as a safe home for their money – and over the last few decades, with the seemingly unstoppable rise in the value of bricks and mortar, buy-to-let has been a popular and rewarding investment for many.

But things are changing. Buy to let yields are down in many areas of the country, with the Bank of England looking at damping down the ‘bubble’ in house prices and the Chancellor mindful of the inability of young first time buyers to own their own home.

The problem is compounded by many landlords financing their buy to let purchase though borrowing – making them even more dependent on ever-rising house prices even to cover their costs, never mind make a profit.

The latest edition of Acuity discusses the buy-to-let phenomenon and what the future could hold for landlords. Please be aware it was written before the recent Brexit vote, which could change the Bank of England’s plans for interest rates.